One of the most common reasons that people end up filing for bankruptcy is because they have been hit with some huge medical bills that they just have no way of being able to pay. They then proceed with bankruptcy relief and it is determined if they qualify for a chapter 13 bankruptcy.
Types of Debt
Debts under this bankruptcy are put into three different categories. There are the general debts, the secured debts and the unsecured debts. The unsecured debts normally receive the least amount of attention when it comes to repayment under a chapter 13 bankruptcy and the medical bills fall into this category. Depending on your financial circumstances you still may end up having to pay a small portion on this medical debt.
In a chapter 7 bankruptcy most likely the discharge will include wiping out the entire medical debt. Many people find the bankruptcy proceedings to be confusing and stressful, and to assist them they will hire a bankruptcy attorney in Houston. With not knowing anything about bankruptcy your first thought may be that the chapter 7 bankruptcy is the best alternative. This may not be necessarily true, plus it has to be determined which bankruptcy you qualify for.
There may be some negative aspects to the chapter 7 bankruptcy in regards to losing some of your assets that you were not aware of. In either case however, your medical debts will be handled. Both forms of bankruptcy are designed to provide financial relief for the individual that has run into dire financial problems.